Question

1. A(n) _____ shows you the schedule of payments on a loan and the total

interest and payments at the end of the loan.

A. payoff table
B. amortization table
C. payment table
D. interest table

2. Secured debts must have _____.
A. collateral
B. real property
C. low interest rates
D. certified lenders

3. Using the table, where does the smallest change in interest rates between
secured and unsecured occur?

A. Secured

B. Unsecured

C. Credit

D. APR

APR
4.75%

5.50%


Good

5.00%

5.90%


Average

5.85%

6.75%


Fair

6.40%

7.25%


Poor

7.50%

8.40%

at the excellent rating
A. at the good rating
B. at the average rating
C. at the fair rating

4. You are purchasing a car for $12,985.00 with the help of your parents. How much interest is saved in the first month by you using their good credit rating compared to your fair credit rating, using the table above?
Review Guidelines:

(12985) * (0.014) * 1/12 = 15.14916666 = $15.15

A. $14.61
B. $54.10
C. $15.15
D. $69.25

Answer 1

The answers are:

1. B. amortization table

2. A. collateral

3. A. at the excellent rating

4. C. $15.15

Answer 2

1. A(n) _____ shows you the schedule of payments on a loan and the total interest and payments at the end of the loan.
B. amortization table

2. Secured debts must have _____.
A. collateral

3. Using the table, where does the smallest change in interest rates between secured and unsecured occur?

at the excellent rating

4. You are purchasing a car for $12,985.00 with the help of your parents. How much interest is saved in the first month by you using their good credit rating compared to your fair credit rating, using the table above?
Review Guidelines:

(12985) * (0.014) * 1/12 = 15.14916666 = $15.15

C. $15.15